Oil and Gas SCADA

SCADA systems are a combination of field devices, communication infrastructure, and software, assimilated into a system that provides safer and reliable operation of remote facilities. Oil and gas manufacturers use SCADA systems to monitor and control the processing of oil from wellsprings through a network of pipelines to refinery plants and further to end-user locations. These systems provide a powerful and proactive method of diagnosing problems, along with real-time data, to make on-point decisions to optimize profits. By utilizing SCADA, oil and gas operators can easily monitor and collect data from remote areas to maximize facility control, optimize oil well production, increase accuracy, improve security and environmental safeguards, reduce energy consumption, and ensure compliance.

Top 10 Oil and Gas SCADA Vendors 2020:

1. ABB LTD
2. ROCKWELL AUTOMATION INC
3. HONEYWELL
4. GE
5. SIEMENS AG
6. IBM CORPORATION
7. BENTEK SYSTEMS LTD
8. YOKOGAWA ELECTRIC CORPORATION
9. ICONICS
10. SCHNEIDER ELECTRIC

Market Overview

SCADA is an automation technique that helps in controlling and monitoring the production process, thereby improving the reliability and efficiency of the process. SCADA systems find extensive application in the oil and gas industry in the upstream, midstream, and downstream sectors. SCADA helps automate, control, and monitor various parameters in distributed sites using a single connected computer. The need for and use of SCADA in different industries vary according to their core functions. For instance, apart from other applications and functions, power distribution requires a very high accuracy with short data response time and, in the oil and gas industry, SCADA systems can help in detecting any corroded or leaking pipelines before it becomes hazardous.

The oil and gas SCADA market was valued at USD 4 billion in 2019 and is projected to grow at a CAGR of 5.77% from 2020 to 2025 to reach USD 6 billion by 2025. Growing pipeline networks, rising demand for remote management of oil and gas pipelines, increased focus on process optimization through automation and digitalization, and increasing use of cloud computing services in SCADA systems are the key growth drivers of the SCADA oil and gas market. However, declining oil and gas prices, high investment costs for setting up of SCADA systems, falling and fluctuating oil and gas prices, and cyber-threats are expected to restrain the growth of the market.

Based on architecture, the market has been segmented into hardware, software, and services. The software segment is expected to grow at the highest CAGR of 5.95% during the forecast period due to the increased adoption of big data analytics and the need for upgradation of existing software modules.

25 companies offering top Oil and Gas SCADA systems are analysed, shortlisted and categorized on a quadrant under Visionary Leaders, Innovators, Dynamic Differentiators, and Emerging Companies.

Vendor evaluations are based on two broad categories: product offering and business strategy. Each category carries various criteria, based on which vendors have been evaluated. The evaluation criteria considered under product offerings include the breadth of offering, delivery (based on industries that the vendors cater to, deployment models, and subscriptions), features/functionality, product quality and reliability, and product differentiation. The evaluation criteria considered under business strategy include geographic footprint (on the basis of geographic presence), channel strategy and fit, vision alignment, and effectiveness of growth (on the basis of innovations, partnerships, collaborations, and acquisitions).

Visionary leaders are the leading market players in terms of new developments such as product launches, innovative technologies, and the adoption of growth strategies. These players have a broad product offering that caters to most of the regions globally. Visionary leaders primarily focus on acquiring the leading market position through their strong financial capabilities and their well-established brand equity. This category includes top Oil and Gas SCADA solutions providers such ABB Ltd, Rockwell Automation Inc, Honeywell, GE, Siemens AG, IBM Corporation, etc.

The dynamic differentiator's category includes established vendors with very strong business strategies. However, they are low in the product portfolio. This category includes vendors such as Quorum Business Solutions and Mitsubishi Group.

Innovators in the competitive leadership mapping are vendors that have demonstrated substantial product innovations as compared to their competitors. The companies have focused on product portfolios. However, they do not have very strong growth strategies for their overall business, when compared with the visionary leaders. This category includes vendors such as Weatherford International Limited, Petrocloud, Inductive Automation, Larsen & Toubro Ltd, Technip, Detechtion Technologies LLC.

Emerging companies’ category comprises vendors with niche product offerings, who are starting to gain their position in the market. They do not have very strong business strategies as compared to other established vendors. They might be new entrants in the market and require some more time before getting significant traction. This category includes vendors such as Elynx Technologies LLC, ZTE Corporation and Globalogix.

Oil and Gas SCADA Market, By Architecture

On the basis of architecture, the oil and gas SCADA market has been segmented into hardware, software, and services. The hardware segment comprises SCADA hardware components such as RTUs or PLCs, communication equipment, and HMI. The software segment comprises cloud-based solutions, programming for PLC or RTU, SCADA software, and HMI software, among others. SCADA systems services include installation, maintenance, upgrades, and modification.

Hardware

The hardware segment comprises RTU or PLC, communication equipment, field instrument and control devices, HMI hardware, IT hardware, and master station instruments, among others. RTUs are standalone data acquisition and control units and are generally microprocessor-based devices that monitor and control equipment. PLCs perform similar functions to RTUs, but lack communication capabilities as compared to RTUs.

Software

The software segment comprises cloud-based solutions, programming for PLC or RTU, SCADA software, and HMI software, among others. Software architecture is the integration of software systems, coding language, programming, information, or real-time data. SCADA software architecture consists of servers, software programs, and HMI. SCADA servers are used for real-time database (RTDB) and are responsible for data collection and handling for polling controllers, alarm checking, calculation of the process time and backup, logging and archiving, exchange of information between the processing system and computers which work 24 x 7, and provide high levels of cybersecurity.

Services

SCADA systems constantly monitor and correct potential problems, thus increasing equipment life, improving system efficiency, and reducing service calls and customer complaints. A number of problems from designing to installation of SCADA systems can be solved by providing services such as repair and replacement. SCADA systems services include installation, maintenance, upgrades, and modification. During the installation of SCADA systems in an industry, various pre-services are offered such as training for operators and details regarding critical alarm notifications via the system, e-mail, text, or voicemail. Maintenance services include service-level agreements, expert assistance, cybersecurity services, SCADA system validation services, and replacement of faulty equipment.

Oil and Gas SCADA Market, By Stream

On the basis of stream, the oil and gas SCADA market has been segmented into upstream, midstream, and downstream. SCADA is a supervisory system that collects and provides data to the user in an understandable form to control processes during upstream, midstream, and downstream operations. SCADA systems use computers, communication systems, and graphical user interface.

Upstream

Upstream operations include various activities such as the discovery and exploration of crude oil and gas. Ascertaining the places where crude oil is located requires intensive and extensive efforts. SCADA systems collect data at remote oil and gas sites, which reduces the need for personnel intervention and leads to route and dispatch optimization. Due to the significant impact of fluctuating oil prices on the oil and gas industry, organizations are constantly looking to reduce costs, improve efficiency, and increase margins. They seek to improve their overall operational efficiency through optimized collaboration and gain access to real-time information for better decision-making.

Midstream

The oil and gas midstream segment serves as critical infrastructure for the transport and storage of hydrocarbons. The growth in shale oil and gas production in the US is creating the need for an expanded midstream network of pipelines, rail, tankers, and terminals. Midstream natural gas activities include the gathering, transporting, and processing of natural gas from the wellhead, removal of impurities, production of natural gas liquids, storage, pipeline transport, and the shipping, liquefaction, or regasification of liquefied natural gas (LNG). Midstream oil activities mainly include the transportation of crude oil and refined products over land, using a network of pipes and pumping stations as well as trucks and rail cars. Companies that operate bulk stations and terminals, and manufacture and install storage tanks and pipelines are also included in carrying out operations in the midstream industry. SCADA is widely used in the midstream sector to gather data during the transportation process through pipelines and provide the same to the HMI interface in order to control the process.

Downstream

Oil and gas operations undertaken after crude oil is transported by the midstream process and before it reaches the point of sale are considered as downstream processes. By-products such as gasoline, natural gas liquid, and diesel are refined by companies in this process. Hence, the refining, marketing, distribution, and sale of end-products of oil are undertaken by the companies involved in the downstream process. Refining in the downstream process is the most commercially challenging part of the energy value chain, as it is a mature business with highly commoditized petroleum products. This makes it necessary for refineries to operate at an optimum level with minimum shutdown periods. This is achieved by industrial automation through the use of sensors, actuators, PLC, and SCADA, which monitor the entire refining process and automate it with minimal human intervention. This leads to fewer human errors and shutdown incidents, and optimum utilization of available resources. Initially, maintenance-related issues were handled based on time-based preventive planning, which would mean periodic checking and maintenance of components, regardless of the need for inspection. However, with the increasing adoption of industrial automation, SCADA, and the Industrial Internet of Things (IIoT), the trend has shifted towards condition-based predictive maintenance strategies.

Why use Oil and Gas SCADA systems?

SCADA system is extensively applied in the upstream, midstream, and downstream oil and gas sector. In the upstream sector, its role often is stereotyped as being mostly to carry remote data transmission.

SCADA’s capability to collect data at remote oil and gas sites cuts down personnel visits and leads to route and dispatch optimization. But the scenario for Oil and Gas SCADA systems have changed. Today, as it is already seen in other process industries, SCADA is a platform technology used to control and supervise many types of industrial processes but also to optimize complex coordination of operations among multiple business partners.

Advances in the scope and scale of oil and gas SCADA implementations are seen in upstream environments, including fast-paced shale fields. These SCADA instances face industrial processes while also intersecting with business operations. In other words, besides being a medium for process control, SCADA supports the vital operations-coordination role. It does so by being a source of collected data.

Benefits of Oil and Gas SCADA systems

Oil and Gas companies that work in all levels of the production process – upstream, midstream and downstream – will find a use for SCADA systems. A quick rundown of how SCADA systems help oil and gas businesses provides an overview of the benefits to these and other businesses and shows how it applies to each level of operation.

• Crucial decision-making: Data collected by a SCADA system helps an organization study data cautiously, foresee trends and execute strategic responses quickly.
• Error reduction: SCADA system automation support eliminates human error. This precision reduces the risk for downtime and improves efficiency.
• Automation: SCADA systems automate routine tasks allowing for faster and more reliable project completion, which increases productivity.
• Long-distance supervision: A SCADA system allows an organization to supervise and control machinery in various geographic locations, especially when it doesn’t have enough manpower.
• Crisis response: When a machine fails, a SCADA system helps management mitigate the damage immediately and minimize environmental disasters.

Considerations before buying Oil and Gas SCADA system

SCADA systems are one of the most critical functionalities of an oil and gas company. Before going for such systems below considerations should be looked for:

• Support for current and future needs
• Considerable reliability and cost-effectiveness
• Integration with an organization’s existing data systems and hardware at all sites
• Accommodation of future changes, such as maintenance routines
• Security measures in place to mitigate potential security risks
• Robust hardware that can handle tough environmental conditions

Applications

• Oil and gas gathering, transmission and distribution
• Tank farm monitoring
• Renewable resource research
• Asset management
• Advanced protocol conversion
• Downhole sub pump monitoring
• Meter Stations
• Compressor Stations
• Valve Stations

Functions

• Control, monitoring, and remote measurement
• Asset optimization with greater visibility
• Enhance safety through streamlining process information
• Gather, process and record real-time data
• Connect employees and equipment through human-machine interface (HMI) software

Market Dynamics

Drivers

• Increasing demand for remote management of oil and gas pipelines
• Increased focus on process optimization through automation and digitalization
• Increased use of cloud computing services in SCADA systems
• Growing pipeline networks
• Optimum and effective exploration of ageing reservoirs

Restraints

• Declining and fluctuating oil and gas prices affecting infrastructure-related investments
• High investments required for setting up SCADA systems

Opportunities

• Increased RandD in wireless sensor networks in SCADA systems
• Big data analytics to expand scope of SCADA systems

Challenges

• Interoperability of multiple system components from different solutions providers
• Cyber-threats could hamper market growth

Trends in Oil and Gas SCADA market

• Price of oil per barrel has gone to a peak level of more than USD 140, and also, a trough low to USD 20, but the average energy consumption is steadily increasing, globally.
• Due to the growing importance of synchronizing and supplementing an organization’s business processes, the demand for ERP solutions is expected to increase
• The integration of SCADA and ERP solution provides real-time asset performance that can monitor and automate maintenance scheduling will grow in coming future.
• SCADA, integrated with ERP, is becoming popular in the oil and gas industry, owing to the focus on safety.
• The availability of open source applications, tough competition, and higher implementation costs are expected to challenge the market’s growth.
• In terms of cost reductions, US natural gas producers have lowered and sustained costs, especially in the Marcellus and Haynesville gas plays, with the aid of automation.
• In the upstream sector, its role is often stereotyped as being largely in support of remote data transmission. However, due to the wide and varied use of SCADA in other industrial sectors, this is expected to change.
• The companies in this market are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. The companies are acquiring start-ups working on oil and gas automation to strengthen their product capabilities.

Recent Developments

In May 2018, Bedrock Automation and Wunderlich-Malec teamed up to deliver the latest automation solutions to counter cyber-threats through the Bedrock OSA platform. This platform protects software, including SCADA, from various types of malware that can severely affect any system.

In July 2019, Emerson acquired Zedi’s software and automation business to broaden its offering of cloud-based SCADA services for controlling and monitoring oil and gas data. The level of accuracy offered by Emerson is much higher than its competitors, the company claims.

In October 2019, Quorum Software provider of digital transformation solutions for the oil and gas industry launched myQuorum DynamicDocs a Cloud-based oil and gas document management system.

In August 2019, Quorum Software acquired OGsys provider of cloud-based oil and gas accounting software for small and medium-sized industries in order to enhance their product portfolio in the advanced oil and gas technologies.

In November 2018, Honeywell has acquired warehouse automation solutions provider Transnorm. The deal was established for 425 million dollars which was one of the trending deal in oil and gas SCADA market.